Hoosier taxpayers will each see an additional $111 in their state tax returns this year, Gov. Mitch Daniels announced Wednesday. Couples filing jointly will receive $222.
Because Indiana has more than 10 percent of its budget in reserves, the state must return part of that money to taxpayers.
Daniels says he and the legislature made sure to give everyone in the state an equal refund.
“We thought that any refund that did happen would be more meaningful to low income and moderate income people, and that’s what happened,” he says.
Democratic House Minority Leader Scott Pelath says the money going toward the taxpayer refund would be better spent elsewhere.
“We have schools not able to meet basic programming needs to keep up with testing demands, we have roads that are still crumbling and are in bad shape, even after we leased the toll road,” he says. “We have many unmet needs for Indiana.”
Pelath says the state needs to take care of the large number of uninsured Hoosiers as the Affordable Care Act begins to take effect in the coming years.
The total amount being returned to taxpayers is $360 million. The refund will be a part of Hoosiers’ normal state income tax filing process.